Question
Prepare the journal entries for items ( a)(j) . a. record service revenue of $210,000 sold on account during January b. Record the adjusting entry
Prepare the journal entries for items (a)(j).
a. record service revenue of $210,000 sold on account during January
b. Record the adjusting entry for bad debts as of January 31, using 1 percent of credit sales method
c. Record the collection of $105,000 of outstanding accounts receivable on February 4
d. Record the write-off of $550 accounts receivable on February 15
e. Record service revenue of $160,000 sold on account during February
f. Record the adjusting entry for bad debts as of February 28 using 1 percent of credit sales method
g. Record the receipt of a note on March 1 for a $12,000 loan to an employee
h1. Record the reversal of the $550 accounts receivable balance previously written off on February 15
h2. Record the receipt of cash of $550 from the customer
i. Record the interest accrued on the note as of March 31
j. Record the adjusting entry for bad debts as of March 31, using the aging of accounts receivable method
Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal [The following information applies to the questions displayed below.) Execusmart Consultants has provided business consulting services for several years. The company has been using the percentage of credit sales method to estimate bad debts but switched at the end of the first quarter this year to the agi of accounts receivable method. The company entered into the following partial list of transactions. a. During January, the company provided services for $210,000 on credit b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $105,000 of accounts receivable. d. On February 15, the company wrote off a $550 account receivable. e. During February, the company provided services for $160,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $12,000 to an employee, who signed a 8% note due in 3 months. h. On March 15, the company collected $550 on the account written off one month earlier. 1. On March 31, the company accrued interest earned on the note. 1. On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis, which inclu the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts an unadjusted credit balance of $6,200. Customer Arrow Ergonomics Asymmetry Architecture Others (not shown to save space) Weight Whittlers Total Accounts Receivable Estimated Uncollectible (5) Total $ 1,300 2,100 79,500 2,100 $85,000 Number of Days Unpaid 0-30 31-60 61-90 Over 90 $ 600 $ 500 $ 200 $2,100 30,300 40,000 5,100 4,100 2,100 $33,000 $40,500 $5,300 $ 6,200 108 200 408
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